INTERNAL EMPLOYEE RELATIONS

Chapter Objectives Discuss the case for and against downsizing Explain discipline and disciplinary action Describe internal employee relations Explain how grievance handling is typically conducted Describe how termination conditions may differ with regard to non-managerial employees, executives, managers, and professionals

Chapter Objectives (Continued) Explain the concept of employment at will Discuss layoffs in today’s workforce Describe transfers, promotions, resignations, and retirements as factors involved in internal employee relations Discuss exit interviews and its purpose

Downsizing What does it mean? Why do organizations downsize? What are possible outcomes?

Downsizing Outcomes Creates low morale Can create a plateau environment Employees start seeking better opportunities Employee trust is reduced Corporate culture suffers Remaining employees are required to do more

Internal Employees Relations Human Resource activities associated with movement of employees within the organization

Discipline and Disciplinary Action Discipline - State of employee self-control and orderly conduct Disciplinary action -Invokes a penalty against an employee who fails to meet established standards

The Disciplinary Action Process Consider internal and external environment Organizational goals and values Establish rules/policies Communicate rules to employees Observe performance Compare performance with rules/policies Take appropriate disciplinary action

Suggested Guidelines for Disciplinary Action Offenses Requiring First, an Oral Warning; Second, a Written Warning; and Third, Termination Negligence in the performance of duties Unauthorized absence from job Inefficiency in the performance of job Offenses Requiring a Written Warning; and Then Termination Sleeping on the job Failure to report to work one of two days in a row without notification Negligent use of property Offenses Requiring Immediate Termination Theft Fighting on the job Falsifying time cards Failure to report to work three days in a row without notification

Approaches to Disciplinary Action Hot stove rule Progressive disciplinary action Disciplinary action without punishment

Hot Stove Rule Burns immediately Provides warning Gives consistent punishment Burns impersonally

The Progressive Disciplinary Approach Improper Behavior Yes Does this violation warrant disciplinary actions? No No Disciplinary Action Yes Does this violation warrant more than an oral warning? No Oral Warning Yes Does this violation warrant more than a written warning? No Written Warning Yes Does this violation warrant more than a suspension? No Suspension Yes Termination

Problems in the Administration of Disciplinary Action Lack of training Fear Guilt Loss of friendship Time loss Loss of temper Rationalization

Grievance and The Procedure An employee’s dissatisfaction related to his or her employment Process for employees to communicate a formal complaint

Termination Most severe penalty; should be most carefully considered Termination of non managerial employees Termination of executives Termination of middle- and lower-level managers and professionals

Demotion as Alternative to Termination Demotions used as alternative to discharge Demotion is process of moving worker to lower level of duties and responsibilities, usually involving a reduction in pay

Employment at Will Unwritten contract created when employee agrees to work for employer No agreement as to how long parties expect the employment to last Public-policy exception Under the public-policy exception to employment at will, an employee is wrongfully discharged when the termination is against an explicit, well-established public policy of the State. For example, in most States, an employer cannot terminate an employee for filing a workers’ compensation claim after being injured on the job, or for refusing to break the law at the request of the employer. The majority view among States is that public policy may be found in either a State constitution, statute, or administrative rule, but some States have either restricted or expanded the doctrine beyond this bound. Implied-contract exception The second major exception to the employment-at-will doctrine is applied when an implied contract is formed between an employer and employee, even though no express, written instrument regarding the employment relationship exists. Although employment is typically not governed by a contract, an employer may make oral or written representations to employees regarding job security or procedures that will be followed when adverse employment actions are taken. If so, these representations may create a contract for employment. Covenant-of-good-faith exception Recognized by only 11 States (see map 3), the exception for a covenant of good faith and fair dealing represents the most significant departure from the traditional employment-at-will doctrine.34 Rather than narrowly prohibiting terminations based on public policy or an implied contract, this exception— at its broadest—reads a covenant of good faith and fair dealing into every employment relationship. It has been interpreted to mean either that employer personnel decisions are subject to a “just cause” standard or that terminations made in bad faith or motivated by malice are prohibited.

Layoffs in Today’s Environment Layoff/recall procedures Outplacement

Layoff/Recall Procedures Carefully constructed procedures should be developed When unionized, procedures are stated clearly in labor-management agreement Agreement may have bumping procedure Recall procedures also stated in agreement – seniority

Outplacement Laid-off employees given assistance finding employment elsewhere Career Management Career Coaching Retooling of ones background

Employee Relations Transfers Promotions Resignations – Exit Interview Retirements